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Hong Kong

Volume 974: debated on Tuesday 27 November 1979

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asked the Secretary of State for Defence what percentage of the cost of the garrison of Hong Kong was paid by the Hong Kong Government during each of the past five financial years; and what was the global sum in each case.

In 1974–75 and 1975–76 the Hong Kong Government made a flat rate contribution of £8·5 million per annum. The global costs of the garrison were not assessed at that time, but they are estimated to have been £42 million in 1974–75 and £44 million in 1975–76.

Since 1 April 1976, under the terms of the defence costs agreement, the Hong Kong Government have contributed 50 per cent. in 1976–77, 62½ per cent. in 1977–78 and 75 per cent. since then. In calculating the contribution due from the Hong Kong Government, the costs of the garrison have been assessed as £49 million in 1976–77, £51 million in 1977–78 and £56 million in 1978–79. These figures are based on prices prevailing in the quoted years.